Are you set up for success in 2016? Join 2,500 real estate industry leaders Aug. 4-7, 2015, at Inman Connect in San Francisco. Get Connected with the people and ideas that will inspire you and take your business to new heights. Register today and save $100 with code Readers.


Takeaways: 

  • Midtier homes priced between $120,000 and $345,000 are the worst-performing housing segment when it comes to overall appreciation.
  • Current price levels for midtier homes are 24.8 percent below 2006 peak levels.
  • Low-tier homes — those selling for less than $120,000 — are closest to 2006 peak levels, only off by 10.1 percent.

A recent report suggests that “midtier” homes — those that sell between $120,000 and $345,000 — are the worst-performing housing segment when it comes to overall appreciation.

According to Clear Capital’s Home Data Index, current price levels for midtier homes are 24.8 percent below 2006 peak levels.

unnamed

In comparison, low-tier homes — those selling for less than $120,000 — are closest to 2006 peak levels, only off by 10.1 percent. Top-tier homes — those selling for more than $345,000 — trail 2006 peak levels by 14.2 percent.

This vast difference in market recovery underscores the continued challenges the majority of homeowners face, despite a quicker recovery in both the bottom and top segments of the market, according to Alex Villacorta, vice president of research and analytics at Clear Capital.

The mid tier’s performance is concerning because it represents the key move-up buyer segment of the market, Villacorta notes, adding that as long as this segment is still fighting to regain an equity foothold, those homeowners will find it difficult to re-engage in the purchase market.

The low tier was both hit and buffered by high levels of distressed activity, which in recent years has sparked investor activity. The top tier has benefited because it’s a segment of the market that’s more resilient to the current economic climate.

unnamed (1)

Year over year, the top-performing markets in terms of overall price appreciation are:

  • Pittsburgh (14.1 percent)
  • Denver (11.3 percent)
  • Seattle (10.4 percent)
  • Dallas (10.2 percent)
  • Miami (9.7 percent)
  • San Francisco (8.3 percent)
  • San Jose (8.2 percent)
  • Tampa-St. Petersburg (8.2 percent)

unnamed (2)

The worst-performing metros cited by Clear Capital included:

  • Providence (-14.1 percent)
  • Baltimore (-2.9 percent)
  • Hartford, Connecticut (-2.3 percent)
  • Cleveland (0.5 percent)
  • Boston (0.7 percent)
  • Rochester, New York (1.2 percent)

Email Erik Pisor.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Real estate news and analysis that gives you the inside track. Subscribe to Inman Select for 50% off.SUBSCRIBE NOW×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription